Anyone signed on the dole while benched?

[Grinder]

I've been benched for 4 weeks now, and my mother-in-law is badgering me to sign-on to get the benefits.

Bearing in mind how slow things are moving at the moment, I am beginning to wonder if she is right!

Has anyone done this and what sort of questions do they ask? I'm a director of my company that is still operating due to my wife's work with her ongoing clients. We have money in the bank - the company could continue to pay my "salary" for quite a long time - and this is what I am inclined to do.

But am I being stupid? Should I just sign on and get what's due to me?!

[FSM with Cheddar]

But am I being stupid?

Yes

Should I just sign on and get what's due to me?!

Nothing is due to you.
You are a director of a company, and are also employed by it. Unless your company makes you redundant, what makes you think you have a right to State Payouts?

[Ardesco]

I've been benched for 4 weeks now, and my mother-in-law is badgering me to sign-on to get the benefits.

Bearing in mind how slow things are moving at the moment, I am beginning to wonder if she is right!

Has anyone done this and what sort of questions do they ask? I'm a director of my company that is still operating due to my wife's work with her ongoing clients. We have money in the bank - the company could continue to pay my "salary" for quite a long time - and this is what I am inclined to do.

But am I being stupid? Should I just sign on and get what's due to me?!

Tell your mother in law to feck off.

If there is money coming into your company and money in your bank account I don't see why they would give you benefits and more to the point why should my taxes go towards you when you obviously don't really need benefits at the moment (there are enough worthless feckers already spending them without adding you to the list).

When I was younger benefits were seen as dishonourable and a last resort, not something to pick up when you go through a slow period. I wish that view still remained....

[Cyberman]

You need to make your company dormant, get your accountant to issue a P45, and have paid NI Class A for one year of the last three. Then you can claim contributions-based Jobseekers Allowance of 60 quid a week which you get for six months. After six-months you would claim means-tested JSA.

You have to give details of all accounts and balances, for which you may have to provide statements if you want to claim means-tested benefits such as housing benefit and council-tax rebate.

Just answer questions honestly and give it a go.

[Grinder]

I think most of us professional types wish those times remained! But why should the chavs get all the free handouts!

My company could easily issue me a P45 to allow me to sign-on, although I would still be a registered director of the company.

I would like to hear more views - perhaps something I can take back to my mother-in-law that will convince her its a foolish idea.

[Cyberman]

Yes



Nothing is due to you.
You are a director of a company, and are also employed by it. Unless your company makes you redundant, what makes you think you have a right to State Payouts?

If you get your accountant to issue a P45, that effectively is proof of redundancy. If you have paid NI contributions you are entitled to contributions-based JSA for 6 months. Make your company dormant and then you are effectively not an active director.

[expat]

I've been benched for 4 weeks now, and my mother-in-law is badgering me to sign-on to get the benefits.

Bearing in mind how slow things are moving at the moment, I am beginning to wonder if she is right!

Has anyone done this and what sort of questions do they ask? I'm a director of my company that is still operating due to my wife's work with her ongoing clients. We have money in the bank - the company could continue to pay my "salary" for quite a long time - and this is what I am inclined to do.

But am I being stupid? Should I just sign on and get what's due to me?!

Your mother-in-law thinks that if you are not on a contract, you are unemployed. She has not grasped the difference between you the resouce of the company being on a contract of the company with a client, and you the employee of the company being paid a salary from the company's funds (not from the client's funds).

I'd guess that the dole office will grasp the difference.

Also agree with Ardesco: if you did claim, it would be a fiddle: you are still employed. If your company can not afford to pay you, it should not be in business and should fold, not lift from the State to pad its payroll.

I think most of us professional types wish those times remained! But why should the chavs get all the free handouts!

They shouldn't. But why should the burglars get all the free flat-screen TVs? OK, I'd better go out and nick a few myself.

[Cyberman]

I think most of us professional types wish those times remained! But why should the chavs get all the free handouts!

My company could easily issue me a P45 to allow me to sign-on, although I would still be a registered director of the company.

I would like to hear more views - perhaps something I can take back to my mother-in-law that will convince her its a foolish idea.

I've already told you what to do.

[Grinder]

You need to make your company dormant, get your accountant to issue a P45, and have paid NI Class A for one year of the last three. Then you can claim contributions-based Jobseekers Allowance of 60 quid a week which you get for six months. After six-months you would claim means-tested JSA.

You have to give details of all accounts and balances, for which you may have to provide statements if you want to claim means-tested benefits such as housing benefit and council-tax rebate.

Just answer questions honestly and give it a go.

Thank you Cyberman. My wife is my accountant (she does payroll for a dozen companies including our own) so that is easy enough.

If bank balances are part of the application process I may run into difficulty with the means-tested element I could pay myself £60/week for a substantial period of time... maybe it isn't worth it after all.

[Grinder]

All wrapped up within 20 minutes - thanks CUK!

I can't make the company dormant as my wife is using it